My goal is to hold these long term. 

As others have stated, your fit & finish goals should be guided by whether you plan to:1) Rent: tenants don't always take care of a property, so you want to use lower-grade materials and workmanship.2) Flip: higher quality on workmanship and materials is usually required.Regardless, you always want to "Maintain to the Neighborhood".

Think about it: most of them are able-bodied adults who choose to live (mostly) free off the backs of others rather than contribute to society.Rent payments are usually steady, but Section 8 tenants took a lot more work upfront, throughout their tenancy and at the end of their tenancy.

A tidy profit, plus confidence to tackle the next project solo.On the topic of self-directed IRAs: While they’re fantastic for gaining experience and diversifying into real estate over time, they can feel restrictive if your main goal is scaling quickly.Here’s what I’d focus on:Using Equity Wisely: A HELOC or cash-out refinance could unlock funds to pursue a flip or duplex without touching your 401(k).Partnering Smartly: Your realtor friend sounds like a great resource.

Tenant screening is challenging and you have to have the right process in place to make sure you choose wisely.The main thing as many said, this shows a red flag on the amount.

Some of these renters are capitalizing on low interest rates and choosing to buy, but many are unable to buy due to lack of down payment or credit factors. 

Build your home criteria based on investment goals, risk profile, returns desired, holding timeline.

Choosing a location near LA, accessible by a short flight or drive, will make it easier to check on your projects.

Once you're ready, create a goal (e.g., "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it.

One piece of advice I often repeat is that the goal of diversification is to reduce or eliminate any single point of failure.